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In: Accounting

Providing a monetary rebate program for purchasing a product: a. Is accounted for similarly to product...

Providing a monetary rebate program for purchasing a product:

a. Is accounted for similarly to product warranties.

b. Creates an expense for the seller in the period of sale.

c. Creates a contingent liability for the seller at the time of sale.

d. All these answer choices are correct.

Solutions

Expert Solution

Solution:

Providing a monetary rebate program for purchasing a product:

1. Is accounted for similarly to product warranties.

2. Creates an expense for the seller in the period of sale.

3. Creates a contingent liability for the seller at the time of sale.

Hence option d "All these answer choices are correct."

ekkarill92 answered 2 years ago
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